Modernizing Accounts Receivable: A Step-By Step Guide To Automating The Order To Cash Process
Accounts Receivable Process Automation
Accounts receivable automation, or AR automation, is powerful tool for modernizing business order to cash workflow. By streamlining the payments collection process, AR automation can help companies reduce manual sprawl and boost ROI. However, the implementation of an AR automation solution involves multiple steps that require careful navigation. This guide will lay out step-by-step guide on how to successfully set up an efficient, modern, and profitable account receivable system using order to cash automation solutions.
Step 1: Research Develop an Ideal Payment Process
The first and most important step in setting up accounts receivable automation is determining the ideal order to cash workflow for your company. It is essential to analyze the existing order to cash process and identify any points of friction before developing new solutions. To do this, understanding the existing customer payment flow, customer behavior, payment terms, and existing customer contact methods are critical. Knowing these key factors helps companies identify areas for improvement and develop customersolutions that align with their needs.
Step 2: Shop for an AR Automation Solution
Once company has clear understanding of its payment processes, it is time to shop for suitable AR automation solution. In the process of selecting solution, it is important to look for solutions that can integrate smoothly with existing businessolutions and solutions that can improve customersatisfaction. To do this, go through customer reviews, read customerstories, use customersupport forums, and ask experts and stakeholders for their input. Although the cost of solutions may vary, it is important to identify solutions that offer the most utility.
Step 3: Set-Up the AR Automation Solution
When setting up accounts receivable automation, it is important to ensure that the customers existing order to cash process is taken into account. Companies should create customized customer profiles, determine customer payment terms and deadlines, review billing processes, and test the system for its accuracy. Solutions should also be well-documented, to make sure that customerservice teams understand how the solution operates. Once this is done, businesseshould test the system to see if it meets customer needs.
Step 4: Train Staff on AR Automation Solutions
Once the AR automation system is set-up, it is important to train staff on the new system. Running mock payment scenarios, creating accounting reports and inviting expert opinions can be effective strategies for ensuring that the staff is properly trained on AR automation solutions. Companies should also take the time to review existing processes to make sure that the new automation system effectively fits into their existing order to cash workflow.
Step 5: Evaluate and Monitor the AR Automation Solution
Finally, companies should evaluate and monitor their AR automation solution to make sure it is delivering the desired results. Regularly reviewing customer feedback, sales reports, and customersatisfaction levels can help companies identify areas for improvement and determine whether their AR automation solution is meeting customer needs. Using data-driven analytics and customer feedback surveys to measure success is great way to determine whether or not the AR automation solution is effective.
Conclusion
Accounts receivable automation is powerful tool for modernizing business order to cash workflow. Although the implementation of such solution requires careful navigation and analysis, successful AR automation system will provide business with faster and more efficient payments collection. By following the five steps outlined in this guide, companies can rest assured that they are setting up modern and profitable accounts receivable system.
